The federal budget has been described as neglecting the regions, with the opposition accusing the government of leaving areas outside major cities behind.
Tuesday's budget saw billions set aside for infrastructure projects, increasing communications links, and boosting the regional health workforce.
Regional Development Minister Catherine King said the budget contained hundreds of initiatives designed to boost regional industries and communities.
"This is a budget centred on the role of the regions and the role that they play in our nation's economic growth, that are as diverse as the people who call them home," she told parliament on Wednesday.
"It's an approach that supports sustainable growth, helping regional communities achieve their potential."
However, a raft of projects for regional areas had been scrapped by the Albanese government in its first federal budget.
Ms King said the budget had laid out new structures for regional funding grants, which would be more targeted.
"These funds will help drive regional economic prosperity but providing equitable and fair access to funding for capital works," she said.
"Many projects that deliver benefits to communities are beyond the scope of constrained regional council and community group budget."
However, Nationals leader David Littleproud said the budget had axed large amounts of dedicated funding for regional areas.
"It's less than 160 days since Labor was elected, and already this government has enforced measures that will make life harder to the millions of Australians who live outside our capital cities," he told parliament.
"This government has broken the hearts of regional and rural families in this perverse budget."
Mr Littleproud in particular took aim at the decision to cut funding for regional infrastructure promised by the coalition, saying it would have made a difference to many communities.
"This is a horror budget for everyone who lives, works and invests in the regions," he said.
"Regional and rural families and businesses have been unapologetically forgotten."
The budget did include $5.4 billion over seven years for regional economic growth and development, in part targeting emerging industries in Western Australia's Pilbara region, the NSW Hunter and central Queensland.
Regional connectivity and resilience was also bolstered by $757.7m over five years, with $400m to improve highway mobile coverage and $40m for a program to address black spots.
However, Mr Littleproud said there was a lack of certainty to how key services such as child care could be made more affordable for families in regional areas.
